The Kraft-Cadbury takeover
27th Jan 2010
Last week, Cadbury and Kraft agreed terms for an £11.6bn takeover. It ended a long, drawn out and very public campaign by Cadbury to preserve its independence.
Cadbury's unions have led the opposition to the takeover, warning that thousands of jobs will be put at risk. Kraft now has a considerable amount of debt and a record of aggressive cost-cutting. The Unite union put together an opposition document for Cadbury's shareholders.
Kraft has stated that it expects "to honour Cadbury's commitments to sustainable and ethical sourcing, including Fairtrade" but it looks unlikely that Kraft would continue to expand its use of Fairtrade cocoa beans into brands beyond Dairy Milk.